The development group that seeks to build a data center in Franklin is challenging the legality of a Simpson County Fiscal Court ordinance that aims to regulate data centers in the county.

TenKey LandCo I LLC filed the lawsuit against the fiscal court on Jan. 20 in Simpson Circuit Court, asking that a judge invalidate the ordinance adopted in December by the fiscal court and declare that the county government has no authority to enact the ordinance within the city of Franklin.

TenKey has applied for city zoning permits to construct a data center on land it owns on Steele Road within the Franklin city limits.

Preliminary concepts sketch out three 200,000-square-foot facilities to be developed over a three-year period on the acreage, situated in about 200 acres near Exit 2 of Interstate 65 at Franklin’s south end.

TenKey representatives say that each facility would represent an estimated $1.6 billion investment, with the project employing 100-200 workers and contributing about $17.68 million in tax revenue that could help fund public services and infrastructure.

The proposal has been met with considerable pushback from residents, who have voiced concerns at public meetings and online that the data center operations would strain the local energy grid and water supply and would be unable to deliver the promised economic windfall for local services or after-construction jobs at the site, among other objections.

TenKey’s application has stalled before the Franklin Planning and Zoning Commission, which tabled action earlier in January on a preliminary development plan addressing water, sewer and power capacity at the proposed site.

In December, the fiscal court approved an ordinance that would require technology data storage centers and integrated energy system facilities to obtain a conditional use permit in order to operate anywhere within Simpson County, whether incorporated or unincorporated.

Penalties for failing to comply with the ordinance include daily fines of up to $10,000, revocation of land use, business and operating permits and a stoppage of prohibited activity through legal action.

Officials with TenKey maintain that their proposal falls within permitted land uses previously established by city zoning regulations for the land where it wants to build.

The lawsuit argues that the county has overstepped its legal authority by passing an ordinance seeking to regulate a project to be built within the Franklin city limits and subject to city planning and zoning laws.

“This lawsuit seeks to clarify the laws applicable to the project, which is proposed to be built entirely within the city limits,” attorney Gregory Dutton, representing TenKey, said in a statement. “The county has attempted to exert control over the project in a manner not authorized by law. We are seeking a judicial determination consistent with our understanding and interpretation of the laws applicable to this project. We will endeavor to have this ruled on as expeditiously as possible.”

Simpson County Judge-Executive Mason Barnes has said that the fiscal court’s ordinance is meant to put legal safeguards in place to protect the county’s citizens should the data center gain approval for construction.

The fiscal court has not yet filed a formal response to the lawsuit.

“I was just recently made aware of the lawsuit filed against the county by TenKey LandCo LLC,” Barnes said in a statement. “I think it is very unfortunate they made the decision to take legal action against us over our ordinance. We will be reviewing this suit with legal counsel to determine what the next steps are.”

The Franklin Planning and Zoning Commission is currently scheduled to hold a plan review of preliminary development documents for the center on Feb. 5 at Franklin-Simpson High School.